Using Online Banking to Protect Your Money
It's funny. I hear people talking about being afraid of using the Internet for online banking. They fear their accounts will be compromised by some unseen hacker and their funds will be siphoned out. Actually, the fact is that when a customer is practicing good computer security and Internet security techniques (as anyone connected to the Internet should), online banking can provide a powerful tool for detecting and preventing fraud losses.

[Good computer security and Internet security include having up-to-date, properly configured anti-virus software, anti-spyware, a personal firewall and promptly applying security updates and patches.]

In the paper world, there's a lag time between when transactions occur and when a customer receives his bank statement. That leaves weeks, sometimes, between when a fraudulent transaction occurs and when the customer learns about it.

In the online world, a customer can log on every day and do a quick review of the account. ATM withdrawald? Checks? Automatic debits or bill payments? It's easy to look at each one, and determine at a glance whether they're legitimate transactions or not. If you spot something that doesn't look quite right, a follow-up phone call or visit to your financial institution can help straighten it out.

Often, a customer that doesn't use online banking has no idea that unauthorized withdrawals have occurred or forged checks have been written until he receives the paper bank statement and reviews it. Sometimes a customer will learn of the fraud when he starts getting NSF notices (notices of insufficient funds) when there should be plenty of money in the account, and that sparks an inquiry.

The sooner you know about fraud in your account, the sooner you can put a stop to it.